Recently the federal govt introduced the new pensions scheme whereby money is deducted from one's salary each month(up to 7.5%). The money is paid to the Pension fund administrators. This money will accrue and will be used to settle the employee when he/she resigns.
My question is:
Will you pay zakat for this money?Owing to the fact that in Nigeria one can actually resign and denied his money.On the other hand,the money grows with time and will one day reach the nisab.
Any ideas?
Very interesting and thought provoking GGNK! Is the Pension Fund allowed in Islam? Where does it get invested? Have u any say in where it is invested since u lose contact with it the moment its out of yr salary? If one has to pay zakat on a pension fund, is it in a situation where u have control over yr pension fund or in a situation where the govt decides for you (involuntarily)?
To my knowledge, govt has mandated that PFA only put the money in 'safe' investments (60% money market, 40% capital market). i have been looking for a PFA that wont invest in money market (which is all Riba) without luck.
The issue of Zakat is a diffrent dimension of the problem.